Unfortunately that a Putney Vale residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Putney Vale property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips under eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Putney Vale will be able to extend under the legislation; however a conveyancer should be able to confirm whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Putney Vale with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Irrespective of whether you are a tenant or a freeholder in Putney Vale,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Putney Vale valuers.
After lengthy negotiations with the landlord of her two bedroom apartment in Putney Vale, Lauren commenced the lease extension process as the eighty year deadline was quickly coming. The legal work completed in October 2006. The landlord’s fees were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. K Howard who, having bought a ground floor flat in Putney Vale in April 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical properties in Putney Vale with 100 year plus lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease expired in 2103. Given that there were 78 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.
An example of a Freehold Enfranchisement decision for a Putney Vale property is 158 West Hill in November 2010. the Tribunal held that the premium to be paid for the freehold reversion should be £99,650 This case related to 7 flats. The unexpired term as at the valuation date was 75.88 years.